Ford CEO Mulally talks Fusion, Europe and succession

Ford Motor brass blitzed major media markets Tuesday, promoting the company's redesigned, 2013 Fusion as a new standard among midsize sedans -- the very turf claimed by Honda only days ago hyping the 2013 Accord that goes on sale today.

Ford CEO Alan Mulally presented the Fusion in New York, sharing the stage with American Idol host Ryan Seacrest. They gave away one of 100 planned free Fusions.

The man considered Mulally's likely heir-apparent, Mark Fields, president of Ford's North and South American operation, hosted the Fusion show in Santa Monica, saying the car's styling, if nothing else, will win the day: "It's going to stand apart with its design."

Ford's board met last week and was expected to name Fields COO, which would have make him, officially, Mulally's No. 2 man and most-likely successor. But the board made no decision.

The 2013 Fusion is going on sale now. Ford is building it in Mexico and next year will make some at Flat Rock, Mich. Mileage ratings for combined city/highway driving range from range from 26 miles per gallon for the base model with 2.5-liter four-cylinder to 47 mpg for the gas-electric hybrid.

Early next year, Ford plans a plug-in hybrid Fusion.

It joins the race among plug-ins for longest claimed range on battery-power only by forecasting 20-plus miles. Honda says the plug-in Accord hybrid, also due next year, will go 10 to 15 miles on battery. Toyota claims 15 electric-only miles for the Prius Liftback plug-in.

Fusion will come in third in the midsize sedan sales race next year, according to Jeff Schuster, senior vice president for forecasting at consultant LMC Automotive. His prediction: Toyota Camry, 385,000; Accord, 375,000; Fusion, 320,000. Nissan has said bluntly that it hopes the redesigned Altima outsells Camry, but LMC forecasts Altima no better than 300,000 sales next year. Through August this year, Fusion's in fourth place.

The midsize car market is enormous, accounting for one of every four new vehicles sold, so even third or fourth still amounts to a lot of vehicles and revenue.

For 2013, Ford boosted the price of the base Fusion model $995, to $22,495. But it sliced the tab for the hybrid a hefty $1,575, to $27,995. Top version, the all-wheel-drive Titanium model with navigation, moonroof, heated seats, 2-liter Ecoboost four-cylinder, is $38,170. The plug-in hybrid isn't priced yet.

Even the sheen of high-ranking executives and new sheetmetal couldn't entirely shift the focus from Ford's other issues:

-- Who will succeed Mulally: The CEO said he has "absolutely not" told Ford's board when he plans to retire, he said in an interview on CNBC in New York. It has been assumed he will leave at the end of next year. "Please don't write me off yet," he said. "Not sure what to make of that," said Aaron Bragman, a senior analyst at consultant IHS Automotive.

-- What's to be done about Europe: Ford says it lost $1,125 per car in the second quarter. The company surprised Wall Street when it said as part of a second-quarter earnings report that it expected the full-year loss in Europe "to exceed $1 billion." That's more than twice the automaker's earlier forecast of a $500 million loss. Ford reported a loss in Europe of $404 million in the second quarter, pushing the first half red ink there to $553 million, vs. a profit of $469 million the first half a year ago.

Europe's sour economy, poor car sales, overcapacity, restrictive union agreements and government involvement prevent car companies from laying off workers and closing plants, as they were able to do in the U.S. "It's industrywide and painful for everybody," Bragman says.

Fields painted a rosier picture, saying he's "impressed with the job the team there is doing at matching production to demand and making sure we look to short term issues while building a long-term foundation."

Europe is especially important to Ford. While North American operations are profitable, the automaker lacks big profits from Asia, where China sales are growing and buyers like luxury cars. Rival GM has a strong China operation to help offset losses in Europe.

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About Chris Woodyard

Chris Woodyard is an auto writer for USA TODAY who covers all aspects of motoring. He revels in the exhaust note of a Maserati and the sharp creases of a Cadillac CTS. Chris strives to live a Porsche life on a Scion budget. More about Chris